External broker reports(aggregated public sources), JF Apex Securities Berhad

JF Apex Securities Bhd

External broker reports(aggregated public sources)

Equity Bottom-Up

<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

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<p><a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a> announced its results this week, which on the face of it do not look exciting, with revenues declining -0.7% YoY, EBITDA up by +0.5%, and net income up by +2.6%.</p>
<p>Beneath these headline numbers, there is a more compelling story, with Indihome seeing +25% YoY revenue growth driven by increasing subscribers and higher ARPU. Data traffic seeing +59.7% YoY growth 1Q2021, with the digital business now accounting for 76.9% of revenues in 1Q2021. </p>
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<p>The legacy SMS, fixed, and cellular voice declined by -25.4% to IDR5.3tn due to the cannibalisation from OTT applications such as Whatsapp. </p>
<p>The mobile segment in Indonesia remains competitive with the major players continuing to offer unlimited plans and other promotional plans but Telkom still realised data revenue growth of +0.4% YoY whilst digital services grew by +22.6% YoY, as the company added new services.</p>
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<section class="figure">After <a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a>'s investment in <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek</a>, the two companies have been integrating various aspects of their services to provide users with new benefits, as well as helping MSMEs to digitalise their businesses.</section>
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<section class="figure"><a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a> continues to augment the network reach and quality by increasing the number of BTS towers.</section>
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<section class="figure"> The wholesale and international business is supported by the tower and data centre business, with the potential for further growth from the rollout of 5G technology.</section>
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<p><a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a> remains a core proxy to Indonesia's digital economy and its growing appetite for data and broadband services. The company trades on 5.6x FY2021E EV/EBITDA and 4.8x FY22E EV/EBITDA versus the 5-year average of 6.2x forward EV/EBITDA, which makes it attractive even without any digital re-rating.</p>
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Telekomunikasi Indonesia (TLKM IJ) announced its results this week, which on the face of it do not look exciting, with revenues declining -0.7% YoY, EBITDA up by +0.5%, and net income up by +2.6%.
Beneath these headline numbers, there is a more compelling story, with Indihome seeing +25% YoY revenue growth driven by increasing subscribers and higher ARPU. Data traffic seeing +59.7% YoY growth 1Q2021, with the digital business now accounting for 76.9% of revenues in 1Q2021. 

The legacy SMS, fixed, and cellular voice declined by -25.4% to IDR5.3tn due to the cannibalisation from OTT applications such as Whatsapp. 
The mobile segment in Indonesia remains competitive with the major players continuing to offer unlimited plans and other promotional plans but Telkom still realised data revenue growth of +0.4% YoY whilst digital services grew by +22.6% YoY, as the company added new services.


After Telekomunikasi Indonesia (TLKM IJ)'s investment in Gojek, the two companies have been integrating various aspects of their services to provide users with new benefits, as well as helping MSMEs to digitalise their businesses.




Telekomunikasi Indonesia (TLKM IJ) continues to augment the network reach and quality by increasing the number of BTS towers.




 The wholesale and international business is supported by the tower and data centre business, with the potential for further growth from the rollout of 5G technology.





Telekomunikasi Indonesia (TLKM IJ) remains a core proxy to Indonesia's digital economy and its growing appetite for data and broadband services. The company trades on 5.6x FY2021E EV/EBITDA and 4.8x FY22E EV/EBITDA versus the 5-year average of 6.2x forward EV/EBITDA, which makes it attractive even without any digital re-rating.













Telekomunikasi Indonesia (TLKM IJ) - The Trend Is Digital

<p><a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a> reported FY2020 results recently, which continued to reflect the company's ongoing digital transformation and increasing importance as a proxy for Indonesia's booming digital economy, with Telkomsel's digital business increasing its contribution to 71.6% of sales in FY2020 versus 63.9% in FY2019. </p>
<p>The company's broadband service Indihome also continues to show strong performance, with revenue up by +21.2% driven by strong growth in subscribers and improving ARPU.</p>
<p>The enterprise segment also showed surprisingly strong growth during the year but especially in 4Q2020, where it saw revenue growth of +67.9% YoY driven by data centres.</p>
<p>Telkomsel deployed a further 27,700 new towers in FY2020, bringing the total to 231,200 BTS towers and it continues to transfer towers to Mitratel.</p>
<p><a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a> recently further increased its investment into <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek</a> to US$450m signifying its commitment to the digital economy.</p>
<p><a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a> remains an increasingly interesting play on Indonesia's growing appetite for data and broadband services, as these areas take over as growth drivers for the company and the legacy voice and SMS businesses fade. The increasing exposure to digital services outside providing the network and data make it a potential candidate for a digital re-rating. The company trades on 5.6x FY2021E EV/EBITDA and 4.8x FY22E EV/EBITDA versus the 5-year average of 6.2x forward EV/EBITDA, making it attractive even without any re-rating.</p>
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Telekomunikasi Indonesia (TLKM IJ) reported FY2020 results recently, which continued to reflect the company's ongoing digital transformation and increasing importance as a proxy for Indonesia's booming digital economy, with Telkomsel's digital business increasing its contribution to 71.6% of sales in FY2020 versus 63.9% in FY2019. 
The company's broadband service Indihome also continues to show strong performance, with revenue up by +21.2% driven by strong growth in subscribers and improving ARPU.
The enterprise segment also showed surprisingly strong growth during the year but especially in 4Q2020, where it saw revenue growth of +67.9% YoY driven by data centres.
Telkomsel deployed a further 27,700 new towers in FY2020, bringing the total to 231,200 BTS towers and it continues to transfer towers to Mitratel.
Telekomunikasi Indonesia (TLKM IJ) recently further increased its investment into Gojek to US$450m signifying its commitment to the digital economy.
Telekomunikasi Indonesia (TLKM IJ) remains an increasingly interesting play on Indonesia's growing appetite for data and broadband services, as these areas take over as growth drivers for the company and the legacy voice and SMS businesses fade. The increasing exposure to digital services outside providing the network and data make it a potential candidate for a digital re-rating. The company trades on 5.6x FY2021E EV/EBITDA and 4.8x FY22E EV/EBITDA versus the 5-year average of 6.2x forward EV/EBITDA, making it attractive even without any re-rating.




Telkom Indonesia (TLKM IJ) - Digital Catalysts Abound?

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Frasers Logistics & Commercial Trust / Equity Bottom-Up

Frasers Logistics & Commercial Trust (FLT SP)

10 in 10 with Frasers Log & Com Trust – Building Frasers’ Flagship Industrial & Commercial Portfolio

<p><a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a> is undergoing a transition, with its legacy business in a downward spiral, with its data business taking up the reigns of growth. The big question is when the decline in the legacy business will plateau, allowing the growth in data to be reflected in headline numbers. </p><p>1H202O numbers saw revenues fall -3.6% YoY to IDR66.9tn, with the decline of -27.5% in SMS, fixed, and cellular voice to IDR13.0tn masking the +6.8% revenue growth in data, internet and IT services to IDR35.3bn. </p><p>Mobile Data saw especially strong growth of +13.5% revenue growth in 1H2020, on the back of 40% plus growth in data volumes. Telkomsel continues to expand its content offering as well as other services such as gaming, which are helping to further increase data consumption.</p><p>Its high-speed broadband and pay-TV service under Indihome grew revenues by +19.1% with subscribers reaching a total of 7.45m. Indihome continues to upsell add-ons to existing customers, which is helping to support ARPUs. </p><div><div>
<p>A key change from a pricing perspective, which caused some recent sell-off has been the introduction of unlimited data plans in a limited number of cities. Management clarified this strategy in its recent analyst call suggesting it was for a combination of factors including market share, declining affordability and network utilisation. The impact has in fact led to an increase in ARPUs as subscribers have topped existing plans. </p>
<p>Valuations look attractive, with <a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a> trading on 5.2x FY21E EV/EBITDA with a supportive dividend yield of 5.4% for FY20E. This is an interesting entry point for investors looking to get exposure to Indonesia's long-term digitalisation theme.</p>
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Telekomunikasi Indonesia (TLKM IJ) is undergoing a transition, with its legacy business in a downward spiral, with its data business taking up the reigns of growth. The big question is when the decline in the legacy business will plateau, allowing the growth in data to be reflected in headline numbers. 1H202O numbers saw revenues fall -3.6% YoY to IDR66.9tn, with the decline of -27.5% in SMS, fixed, and cellular voice to IDR13.0tn masking the +6.8% revenue growth in data, internet and IT services to IDR35.3bn. Mobile Data saw especially strong growth of +13.5% revenue growth in 1H2020, on the back of 40% plus growth in data volumes. Telkomsel continues to expand its content offering as well as other services such as gaming, which are helping to further increase data consumption.Its high-speed broadband and pay-TV service under Indihome grew revenues by +19.1% with subscribers reaching a total of 7.45m. Indihome continues to upsell add-ons to existing customers, which is helping to support ARPUs. 
A key change from a pricing perspective, which caused some recent sell-off has been the introduction of unlimited data plans in a limited number of cities. Management clarified this strategy in its recent analyst call suggesting it was for a combination of factors including market share, declining affordability and network utilisation. The impact has in fact led to an increase in ARPUs as subscribers have topped existing plans. 
Valuations look attractive, with Telekomunikasi Indonesia (TLKM IJ) trading on 5.2x FY21E EV/EBITDA with a supportive dividend yield of 5.4% for FY20E. This is an interesting entry point for investors looking to get exposure to Indonesia's long-term digitalisation theme.


Telekomunikasi Indonesia (TLKM IJ) - Out with the Old and in with the New

Malaysia

Maxis Berhad operates as a mobile and fixed communication service provider. The Company, through mobile and fiber telecommunications along with IT infrastructure services, offers mobile and fixed data products, voice and SMS services, mobile payment solutions, remote health monitoring, Cloud solutions, and a business directory to businesses and individuals in Malaysia.

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Maxis Bhd (MAXIS MK)

Postpaid leads higher sales

Buy Maxis Berhad: Postpaid leads higher sales. - By: JF Apex Securities Bhd

JF Apex Securities Bhd

Telekomunikasi Indonesia (TLKM IJ) - The Trend Is Digital

Telkom Indonesia's recent 1Q2021 results reflect a competitive environment but also its growing strength in its digital business, which continues...

Angus Mackintosh

Telkom Indonesia (TLKM IJ) - Digital Catalysts Abound?

Telkom Indonesia is increasingly exposed to the digital economy, not just through data and network but through digital mobile services, fixed...

Angus Mackintosh

10 in 10 with Frasers Log & Com Trust – Building Frasers’ Flagship Industrial & Commercial Portfolio

Singapore Exchange Ltd (SGX)

Telekomunikasi Indonesia (TLKM IJ) - Out with the Old and in with the New

Telekomunikasi Indonesia (TLKM IJ) is undergoing a transition, with its legacy business in a downward spiral, with its data business taking up the...

Angus Mackintosh

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